Business Structure Change

What does a company do in the business structure changes and a returning employee formerly on Disability or Pregnancy leave may need to have their position changed because of it? I know that we in California have to return the employee to a comparable position but what if that is not possible. Can we be liable if we have to term someone?

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  • We just received our 'case closed' leter from the Department of Fair Employment and Housing this week on a very similar case just this week.

    Regardless of how much you try to get the affected employee to understand the reorganization she may still file a claim of discrimination with the DFEH. We felt we had a strong case to eliminate the employee's position. We sent our information to the DFEH and they waited until the 11th hour to contact us. Then the main objective then was for us to settle with the former employee in a 'no fault' decision. My supervisor said 'no' and we forced the DFEH to interview our witnesses and within 5 minutes of speaking to our last witness the investigator said the DFEH was closing the case. However that does not mean your employee can't get an attorney to sue, even after receiving the case closed letter.

    My message here is if you believe you have a strong case and strong supporting documentation, you can move forward, but expect a DFEH claim to be filed. You can get the case closed, again if your case is strong and you hold your ground with the investigator.

    Good luck!
  • Am I to infer from the question and response that a governmental body in California would restrict a company from making a business decision to restructure/reorganize the company to the extent that the reorganization can in no substantial way impact a person who is on a medical leave of absence from the job?
  • Don D.

    In California the answer would be yes. Even though the law states the employee on leave should not be given more rights than had the employee remained working, the Department of Fair Employment and Housing suggested we should have brought her back for a week or two then eliminated her job (even the DFEH said if we kept her for a year she could still file the claim). Even going so far as to suggest we displace another employee for this individual, even if she really wasn't qualified. It really felt as there was no way to win, that we are not really in control of the company. Very frustrating!
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